Distributed ledger technology service - outsourcing company Boosty Labs

Advantages of DLT adoption

Reliability

DLT systems feature a large number of nodes that reach a consensus when processing transactions. Because of their decentralized and redundant nature, DLTs do not have single points of failure, unlike conventional databases. Such invulnerability helps them reliably resist hacker attacks.

Transparency and accessibility

All authorized DLT users can track and verify public ledger information, as well as exchange encrypted data, which forms a high level of trust. Also, this system helps quickly detect market manipulations.

Security and privacy

With native encryption, hashing, and key-based schemas,DLT provides a high level of security and privacy of information stored in it.

Digital presentation of data

Digitization of assets is a process in which the rights to an asset are converted into a digital token on a blockchain. Ownership rights are transmitted and traded on a digital platform, and the real-world assets on the blockchain are represented by digital tokens.

Speed

Due to the lack of intermediaries, the verification processes are sped up. A multi-level monitoring mechanism ensures that DLT does not need any third parties.

Reduced operational costs

Absence of intermediaries and high level of automation significantly reduce operational costs of transactions.

Which business can benefit from distributed ledger technology outsource?

Financial accounting

DLT is a kind of decentralized accounting, which is very difficult to falsify. It enables verifying transactions in real time without asking for permission from a trusted third party. DLT technology can be used by insurance companies, banks, in logistics, in the supply chain, by government entities and for identity verification.

Lotteries and social media

The chain block is located for DLT in a decentralized system. This means that no single person or a group of people can take control of the entire system. It is convenient both in the lottery and in the social network. Despite the fact that each node of the system has copies of all data, it is impossible to change or destroy it. This unique feature ensures the ultimate transparency and security, providing the users with a variety of options.

Distributed ledger technology is an information storage technology. Its key features include shared use and synchronization of digital data according to the consensus algorithm, geographical distribution of equivalent copies in different locations around the world and absence of a central administrator.

Distributed ledger technology is intended for distributed, secure and transparent management of information that is created by multiple participants who interact with each other in a block chain.

This network stores data such as date, time, amount and author of each transaction or operation, while the peculiarity of a blockchain operation is that the specified information is stored not on one central computer, but is a full copy of the entire database. The database is stored simultaneously on multiple computers that are geographically distributed.

Areas of application of the distributed ledgers

Thanks to the active use of DLT in financial transactions, the interest in the distributed ledger technology service is growing. This is not surprising because Bitcoin, having won global recognition, proved that the distributed ledger technology and, in particular, blockchain really works.

However, distributed ledger technology companies assure that decentralized digital ledgers can be successfully integrated not only into the financial services sector, but also into government and business operations. For example, this technology will be useful in taxation, social benefit distribution and voting systems, as well as helping to improve control in the field of intellectual property rights protection.

While DLT can speed up many processes and save resources, is it safe and reliable enough to be implemented everywhere? The merits and flaws of the distributed ledger technology are discussed below.

Kinds of DLT

In terms of accessibility, the systems are divided into open, private and federated DLTs.

Private institutions, such as banks, have understood that they can use the basic idea of the blockchain and create a chain (private or federated), where the validator is a member of a consortium or a legal entity of the same organization. In this context, the term “blockchain” is very controversial. Therefore, the term “distributed ledgers” has become more common.

Open DLTs are modern publicly accessible protocols based on consensus algorithms, with open source code. Anyone can join the system and run a full node. Anyone in the world can send transactions over the network and expect them to be included into the blockchain, provided they are valid. Anyone can read a transaction in the block viewer. Transactions are transparent and anonymous.

Impact of DLT technology:

Potentially can destroy existing business models by refusing mediation.
No infrastructure costs: There is no need to support servers or system administrators, which drastically reduces the cost of creating and running decentralized applications (dApps).

Federated distributed ledgers or blockchain consortia are systems that operate under the supervision of a group. Unlike the public ones, they do not allow anyone with Internet access to participate in the transaction checking process. Such ledgers are faster and more confidential. They are mainly used in the banking sector. The consensus is controlled by pre-selected nodes. For example, there can be a consortium of 15 financial institutions, each holding a node, and a block should be signed by 10 of them.

Impact:

reduces transaction costs and data redundancy;
replaces outdated systems, simplifies document management and minimizes manual labor;
complements the ecosystem without destroying it;

Private blockchains are not DLTs, as permissions are stored centrally for one organization. Read permissions can be publicly accessible or limited.

Distributed ledger technology (DLT)

Advantages of DLT adoption

Which business can benefit from distributed ledger technology outsource?

Technologies

Areas of application of the distributed ledgers

Kinds of DLT